The Dynamic Effects of Innovation, FDI, & Trade Liberalization on Services Sector: An Evidence from Developed and Developing Economies

The current study is a bid to explore the dynamic effects of Innovation, FDI, and trade openness on services sector in selected developed and developing economies for the period of 1992 to 2016. For computing the empirical findings, this study deploys the static as we all dynamic panel data estimation approaches. The results reveal the significant role of GDP per capita and FDI in the growth of services sector. However, the services sector incurs the detrimental repercussions on the account of trade liberalization. These findings also demonstrate that, in both samples of economies, the services sector does not respond to the productivity differential. Furthermore, innovation exhibits a significant association with the growth of services sector in the case of developing economies.

Labor demographics and productivity: all-star roster turnover and foreigners

PurposeTalent compression is the labor market phenomenon where the average productivity differential between participants declines and has been used to explain the overall increase in competition within some professional sports markets. A finding that competitiveness is uniquely driven by talent compression is consistent with Rottenberg (1956), who argued that resource distribution is independent of factors that are invariant to labor productivity.Design/methodology/approachRather than incorporate MLB team roster turnover as many of the past studies have done, we prefer to measure of all-star turnover in membership. Problematically, movement from an MLB team to an MLB team is limited by rule, finances and the fact that there are very few teams competing for player services. In contrast, All-Star membership is typically costlessly chosen by many millions of fans, league players and managers. In this way, All-Star voting should be invariant to many of the factors that affect movement from an MLB team to an MLB team.FindingsIn the end, we find that a close association between all-star turnover rates and the makeup of MLB’s labor pool.Originality/valueThe paper offers a new measure of player mobility.

Real exchange rate misalignment and economy

PurposeThe purpose of this paper is to examine the impact of real exchange rate misalignment on economy and economic sectors, namely construction, manufacturing and mining and quarrying in Malaysia.Design/methodology/approachThe equilibrium real exchange rate and economic models are estimated using the autoregressive distributed lag approach.FindingsAn increase in productivity differential or reserve differential will lead to an appreciation of real exchange rate in the long run. An increase in positive (negative) real exchange rate misalignment will lead to an increase (decrease) in economy. An increase in long-run real exchange rate misalignment will lead to a decrease in economy. Real exchange rate misalignment or long-run real exchange rate misalignment can influence the manufacturing sector in Malaysia. More specifically, undervaluation will promote whereas overvaluation will hurt the manufacturing sector.Originality/valueReal exchange rate misalignment can be a policy to influence economy but may not be the best choice.

Effect of Exports on the Economic Growth of Brazilian Microregions: An Analysis with Geographically Weighted Regression

This study aimed at analyzing the effect of exports on the economic growth of Brazilian microregions in 2010, based on the theoretical model developed by Feder (1982). The hypothesis is that the economic growth of a region results from the existing productivity differential between the exporting and non-exporting sectors, as well as from the externality generated by the exporting sector in the economy. To reach the results, a geographically weighted regression was estimated, identifying a positive effect on the externality in practically all the Brazilian microregions. Regarding productivity, its effect was limited to the microregions close to the two largest ports in Brazil.

Productivity and Externality Effects of Exports: An Application of FEDER Model in Pakistan and India

To find out export led growth (ELG), this look at has used FEDER model to seize the deliver-side effects for Pakistan and India. In FEDER model, this look at has used sectors to discover general consequences of export zone on increase via applying the OLS method. The hypothesis that marginal elements productivities are not identical in export and non-export sectors of the Pakistan and India economy is tested through the usage of the time series facts 1972 to 2014. In FEDER version, the full results of exports together with externality effects and productiveness differential have been re-expected. The predicted effects indicate that marginal aspect productivities are significantly better in export region in case of Pakistan simplest. Moreover the distinction appears to derive, in part, from inter-sectoral advantageous externalities generated by export zone. The effects of productivity differential of export zone appear with bad sign in the course of the evaluation for Pakistan however it is advantageous for India. In broad terms, therefore the consequences of this examine are within the aid of export orientated, outward looking coverage to trade family members adopted with the aid of policymakers during the last a long time.

THE REAL EXCHANGE RATE DETERMINATION: EMPIRICAL EVIDENCE FROM MALAYSIA

This study examines the real exchange rate determination in Malaysia. The result of the autoregressive distributed lag approach shows that an increase in the real interest rate differential, productivity differential, the real oil price or reserve differential will lead to an appreciation of the real exchange rate in the long run. The real oil price and reserve differential are important in the real exchange rate determination. The dynamic ordinary least squares (DOLS) estimator shows about the same conclusion of the autoregressive distributed lag approach. The result of the generalized forecast error variance decomposition shows that the real interest rate differential, productivity differential, the real oil price and reserve differential are generally important to the real exchange rate determination.

Skill and Foreign Firm Premium

In this chapter, the authors construct a model that allows for joint discussion of foreign firm and skill premium in wages, and their evolution upon increased foreign firm activities. They allow for (1) dynamic interaction between the domestic and foreign firms in the labor market, via a two-sided search model, (2) technology differentials between domestic and foreign firms, and (3) varying cost of doing business between domestic and foreign firms. Analytical and numerical results point to the importance of modeling all three features. Both the level and the changes in the relative wages depend on the productivity differential (technology gap) and the job creation costs.

Link between Exporting and Productivity

The theory that links exporting behaviour and productivity consists broadly of two hypotheses—the ‘self-selection hypothesis’—more productive firms venturing for exports and the ‘learning by exporting hypothesis’—exporting leads to increased productivity. This study measures the productivity differentials between exporters and non-exporters for 120 firms belonging to the Indian chemical industry to investigate if the self-selection hypothesis holds. The productivity differential comparison between exporters and non-exporters show that non-exporters have higher total factor productivity than exporters. Though labour productivity is higher in exporters than non-exporters, the yearly averages show that the labour productivity of exporters is converging to that on the non-exporters. In terms of capital productivity, overall averages show that exporters are more productive, but yearly trend shows that capital productivity of non-exporters has overtaken that of exporters over the years. With respect to self-selection hypothesis, the study does not find any evidence for it for the chemical industry. Prior exporting status, size, being part of a group and age are the only factors that induce a firm to go for exporting.